Correlation Between Guardforce and American Rebel
Can any of the company-specific risk be diversified away by investing in both Guardforce and American Rebel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Guardforce and American Rebel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardforce AI Co and American Rebel Holdings, you can compare the effects of market volatilities on Guardforce and American Rebel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guardforce with a short position of American Rebel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and American Rebel.
Diversification Opportunities for Guardforce and American Rebel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guardforce and American is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and American Rebel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Rebel Holdings and Guardforce is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guardforce AI Co are associated (or correlated) with American Rebel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Rebel Holdings has no effect on the direction of Guardforce i.e., Guardforce and American Rebel go up and down completely randomly.
Pair Corralation between Guardforce and American Rebel
Assuming the 90 days horizon Guardforce AI Co is expected to under-perform the American Rebel. But the stock apears to be less risky and, when comparing its historical volatility, Guardforce AI Co is 6.65 times less risky than American Rebel. The stock trades about 0.0 of its potential returns per unit of risk. The American Rebel Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.50 in American Rebel Holdings on August 31, 2024 and sell it today you would lose (0.68) from holding American Rebel Holdings or give up 45.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.14% |
| Values | Daily Returns |
Guardforce AI Co vs. American Rebel Holdings
Performance |
| Timeline |
| Guardforce AI |
| American Rebel Holdings |
Guardforce and American Rebel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and American Rebel
The main advantage of trading using opposite Guardforce and American Rebel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, American Rebel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Rebel will offset losses from the drop in American Rebel's long position.| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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